Ukraine plans to provide tax-based compensation for investment in the processing industry.

Two draft laws have been registered in the Verkhovna Rada that outline a system of partial reimbursement for investment costs through tax reductions. The compensation will cover expenses such as constructing engineering networks, structures, and related infrastructure; purchasing or building production facilities, as well as their modernization and technological upgrades; acquiring new equipment and components; and land acquisition costs. The partial reimbursement of costs is proposed to be achieved by lowering certain tax obligations, including income tax, import VAT on equipment, import duties, property tax, and land tax.

The amount of compensation will be based on the total investment in the project:

1. From €100,000 to €1M – up to 70% of costs
2. From €1 to €20M – up to 50%
3. From €20 to €50M – up to 30%

“The initiative applies not only to new businesses but also to investments in upgrading existing production facilities. This initiative continues to support the implementation of the Made in Ukraine policy, which is designed to make production, investment, and export profitable in Ukraine,” the authors of the bill note.